Railways in the dock over Rs. 300 crore service tax evasion

Revenue authorities have asked the railways to share income details about tatkal services, ticket cancellation and bed roll charges.

By next year, 400 railways stations will be WiFi enabled. [Representational Image]Reuters

The Indian Railways is under the scanner for alleged service tax evasion to the tune of about Rs. 300 crore. The central revenue authorities have asked the railways to share its service tax details on some of the services offered by its 16 zones in the country.

Seeking details about income on tatkal services, ticket cancellation and bed roll charges, a source told PTI: "We have noticed that railways and its zones are not discharging their service tax liabilities on tatkal charges, cancellation charges and bed roll charges. An investigation is being conducted into the matter and relevant details have been sought."

Officials of the railway ministry allege that whatever service tax is levied is done at the instance of the finance ministry. However, service tax authorities and the railway administration are reportedly in discussion over other service tax issues.

Tax authorities claim that though the railways collected service tax on tatkal, ticket cancellation and bed roll charges from customers, it did not remit it to the department.

"There is alleged short payment of Service Tax. The matter is being investigated. The estimated alleged Service Tax evasion by the railways is Rs 300 crore," the source said.